Employee stock purchase plan

Employee stock purchase plan An employee stock purchase plan is a benefit companies may offer employees to allow the discounted purchase of its stocks. This is often accomplished through deductions from the employee’s pay, and the opportunity is typically available during an offering period. Employees who elect to participate specify the amount of stock, in a percentage or dollar figure, they would like to purchase. There may be limits to the amount an employee can purchase, including an annual limit enacted by the IRS. Though this plan is usually only available during a specified time, participants are generally allowed to change their contribution whenever they want to.p>Related terms:

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